Preferred stock Common stock ( 100,000 shares at R1 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity 10 100000 900000 700000 1700000 Share price EPS DPS P/E R30 R3,60 R1,08 R8,33 a) Show the effects on the equity account, EPS and P/E ratio of a 20% of a stock dividend. After stock 20% dividend Preferred stock Common stock ) Paid-in capital in excess of par Retained earnings Total stockholders' equity 0 120000 [2] 1480000 [2] 100000 [2] 1700000 [2] 5 [1] Change in price Net Income Change in EPS [1] [1] b) Show the effect on the equity accounts, EPS and P/E ratio of a 5-for-4 stock split. After 5-for-4 stock split Preferred stock Common stock ) Paid-in capital in excess of par Retained earnings Total stockholders' equity [2] [2] [2] [2] Change in price Change in EPS Change in the number of Outstanding shares [1] [1] [1]